CFTC Reaches Settlement with One Trader Accused of Spoofing

The United States Commodity Futures Trading Commission (CFTC) has made some progress in a spoofing case lawsuit against former Deutsche Bank traders James Vorley and Cedric Chanu.

For several months, the regulator has been in settlement negotiations with the accused. The CFTC has also negotiated a settlement with James Vorley, according to a status report filed with the Illinois Northern District Court on September 3, 2021.

The CFTC's Division of Enforcement, in particular, has struck an agreement in principle with Vorley to resolve the case in its entirety, which the plaintiff is prepared to recommend to the Commission. Plaintiff and Defendant Vorley now request that the Court continue the stay for another 45 days in order for the Division and Defendant Vorley to complete a proposed Consent Order and the Commission to review the recommendation.

On the other hand, the CFTC and Defendant Chanu have reached a stalemate and are unable to resolve the issue at this time following settlement negotiations. As a result, Plaintiff and Defendant Chanu have asked for the stay to be lifted in part so that the case against Defendant Chanu can proceed.

In January 2018, the CFTC filed a complaint against the traders. They were accused of spoofing and participating in a manipulative and fraudulent scheme in the precious metals futures markets, according to the regulator.

According to the CFTC Complaint, Vorley and Chanu participated in a manipulative and deceptive scheme while employed at a significant financial institution from at least May 2008 through at least July 2013, while placing orders and trading in the precious metals futures markets on a registered business. Vorley and Chanu, in particular, regularly engaged in manipulative or misleading acts and activities in furtherance of the scheme by spoofing.

Except for document discovery, this case has been stayed pending the conclusion of a separate criminal proceeding. Vorley and Chanu were sentenced to one year and one day in jail in June.

The sentences of James Vorley and Cedric Chanu are being appealed.